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  • tax rebates

    Temporary Tax Rebates Do Not Stimulate Economic Growth

    The Congressional Budget Office (CBO) recently released a paper: Did the 2008 Tax Rebates Stimulate Short-term Growth? The paper is a comprehensive summary of the best recent literature on the topic. CBO sorts the literature into three categories: Studies that used detailed data about individual spending to study the effects of the temporary tax rebates; Studies that used survey data of what individuals did with the money when they received it; and Studies that used national data on income and spending to measure the effects of the tax rebates.